The proposal came as part of the governor's most recent budget proposal.

In 2004, California voters approved Proposition 63 to increase the state income tax on residents whose annual incomes exceed $1 million to fund mental health services.

Reallocating funds from Proposition 63 would require voter approval.

On Tuesday, CMHDA Executive Director Patricia Ryan said that Schwarzenegger's plan is not in accordance with state law and would translate to higher costs for hospitalizations and law enforcement for the state.

In addition, Ryan questioned whether the governor is seeking to shift funds from Proposition 63 permanently and voiced concerns that the change could worsen state and local funding shortfalls (Hines, Riverside Press-Enterprise, 1/27).
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